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Gladstone Commercial (GOOD) Laps the Stock Market: Here's Why

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The latest trading session saw Gladstone Commercial (GOOD - Free Report) ending at $16.51, denoting a +0.64% adjustment from its last day's close. This change outpaced the S&P 500's 0.4% gain on the day. Meanwhile, the Dow experienced a rise of 0.09%, and the technology-dominated Nasdaq saw an increase of 0.63%.

Heading into today, shares of the real estate investment trust had gained 1.49% over the past month, outpacing the Finance sector's loss of 3.26% and lagging the S&P 500's gain of 3.76% in that time.

The investment community will be closely monitoring the performance of Gladstone Commercial in its forthcoming earnings report. The company is scheduled to release its earnings on November 4, 2024. On that day, Gladstone Commercial is projected to report earnings of $0.35 per share, which would represent year-over-year growth of 2.94%. In the meantime, our current consensus estimate forecasts the revenue to be $36.66 million, indicating a 0.55% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.40 per share and a revenue of $146.31 million, signifying shifts of -4.76% and -0.86%, respectively, from the last year.

Any recent changes to analyst estimates for Gladstone Commercial should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 1.08% rise in the Zacks Consensus EPS estimate. Currently, Gladstone Commercial is carrying a Zacks Rank of #3 (Hold).

Digging into valuation, Gladstone Commercial currently has a Forward P/E ratio of 11.71. For comparison, its industry has an average Forward P/E of 12.8, which means Gladstone Commercial is trading at a discount to the group.

Investors should also note that GOOD has a PEG ratio of 1.95 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. REIT and Equity Trust - Other stocks are, on average, holding a PEG ratio of 2.55 based on yesterday's closing prices.

The REIT and Equity Trust - Other industry is part of the Finance sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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